AKD Securities Limited – INDU: 1HFY15 Result Review : AsiaNet-Pakistan

AKD Securities Limited – INDU: 1HFY15 Result Review

February 20, 2015 | Brokerage | Share:

Karachi, February 20, 2015 (PPI-OT): Indus Motor Company (INDU) announced its financial result for 1HFY15 where the company posted NPAT of PkR3.1bn (EPS: PKR39.99) vs. NPAT of PkR1.4bn (EPS: PkR17.20) in 1HFY14, translating into a robust growth of 132%YoY.

Alongside the result, the company announced an interim cash dividend of PkR20/share. The result was above AKD Securities Limited’s expected 1HFY15 NPAT of PkR2,6bn (EPS: PkR32.94) and DPS of PkR15/share; where the deviation in profits is due to higher than expected gross margins.

Key highlights of the result include: 1) Increase in 1HFY15 GMs to 11.88%; up 2.86ppts YoY (in 2QFY15 alone, gross margins were recorded 3.75ppts QoQ higher at 13.54%), 2) 50%YoY increase in topline to PkR39bn, and 3) a jump in other income by 192%YoY.

With the highest ever monthly sales volume of 6,415 units in Jan’15, AKD Securities Limited believes the volumetric uptick is encouraging with 2HFY15 sales expected to be better than 1HFY15.

On the margin front, positive surprises can come from further JPY weakness along with higher than anticipated dip in input costs. Currently, AKD Securities Limited an Accumulates stance on the scrip with a TP of PkR1,102/share offering 10% upside at current levels, however, AKD Securities Limited looks to revisit AKD Securities Limited’s investment case upon release of detailed accounts.


Profit and Loss Accounts
(In PkRmn) 1HFY15A 1HFY14A YoY 2QFY15A 1QFY15A QoQ
Net Sales 39,098 26,048 50% 21,820 17,277 26%
COGS 34,451 23,698 45% 18,866 15,586 21%
Gross Profit 4,646 2,350 98% 2,955 1,692 75%
Operating Exp 1,010 679 49% 420 590 -29%
Operating Profit 3,636 1,671 118% 2,535 1,102 130%
Other Income 1,326 455 192% 690 636 9%
Other Charges 360 161 124% 232 128 82%
Financial Charges 21.62 9.64 124% 9 12.40 -26%
NPBT 4,580 1,955 134% 2,983 1,597 87%
Taxation 1,437 603 138% 967 470 106%
NPAT 3,143 1,352 132% 2,016 1,127 79%
EPS (PkR) 39.99 17.20 132% 25.65 14.34 79%
Source: Company Announcement

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Category: Brokerage